Honda Motor has announced its intention to suspend production for a five - day period, spanning from December 29, 2025, to early January 2026, at its factory in China. This factory is a joint - venture endeavor with GAC Group. The suspension is a direct result of a disruption in the supply of essential automotive chips. In the meantime, Honda's domestic factories located in Japan are also set to experience production interruptions. They will halt production for two days, from January 5 to 6, 2026, and subsequently reduce their output from January 7 to 9. The root cause of these production halts can be traced back to supply issues at Nexperia, a global electronics component supplier that is under Chinese control. Nexperia has seen a significant decline in its global production capacity. This decline is attributed to the Dutch government's intervention, which was carried out on the grounds of 'national security.' Prior to this, Honda's factories in Mexico, the United States, and Canada had already either ceased or curtailed production for the very same reason. The chips manufactured by Nexperia play a pivotal role in the basic systems of automobiles. As a result, the disrupted supply of these chips has had a direct and adverse impact on Honda's global production lines. This incident serves as a stark reminder of how the semiconductor supply chain, operating within the framework of a globalized division of labor, is highly susceptible to political interference.
